Having dominated the Chinese market for decades, Changhong’s international mission is in full effect, says Huang Dawen, Vice General Manager, Sichuan Changhong Electric Co., Ltd.
Celebrating its 60th anniversary, Sichuan-based company Changhong is the second-largest television manufacturer in China, and has dominated the home market in TV sales for nearly 20 years. At IFA 2018, Changhong is displaying its most advanced TV technology including 8K, OLED, as well as AI/VI products, an intelligent refrigerator, an air conditioner and other smart home products. We spoke to Huang Dawen, Vice General Manager, Sichuan Changhong Electric Company, and asked him to describe how the company has developed.
WE ARE NOW ENTERING A NEW ERA OF EXPORTING BRAND AND INNOVATION
Changhong is a world-famous household appliance enterprise, established 60 years ago in 1958. Changhong became the first Chinese producer of black and white TVs in 1972. Now, Changhong has become an integrated enterprise with annual sales of $17.2 bn, more than 80,000 employees, and its products cover TV, refrigerators, air conditioners, compressors, small household appliances, robots, IT and other industries.
Among our achievements we have the honour of being the largest compressor supplier in the world, the largest aviation power supplier in China, the largest wireless connection module manufacturer in China and the largest data storage solution provider in China. Changhong has always focused on product development, technology upgrading and quality control with more than 10,000 technical staff and more than 10,000 technical patents. Overseas sales reached$2.1 bn in 2017.
Why is overseas development and global development so important for Changhong?
Changhong’s vision is to become a respected enterprise globally, so our goal is not only to become China’s Changhong, but also the world’s Changhong. As a TV industry leader in China, Changhong Group undertook internationalisation as an important development strategy as early as the 1990s. Since Changhong invested in establishing a factory in Indonesia and initiated our overseas brand business in 1998, we have continued to develop the overseas market and are still doing so 20 years later.
Secondly, the rise of national strategy “One Belt One Road” has also promoted a new layout of globalisation and internationalisation for Chinese enterprises. A union of Chinese home appliance brands, among whom Changhong works as a representative, continue to accelerate their layout and investment in the overseas market and emerging markets: both in terms of globalisation strategy, with the goal of realising scale management, and seeking internationalisation of our own brands at the same time.
With two decades of international development, Chinese household appliance brands have separated from the era of simple OEM, and independent design and development have become mainstream in the industry. The mission of successfully shipping products has been completed; now we are entering a new era of exporting brand and innovation.
What is the most important market for Changhong, and how is this market progressing?
European Changhong was set up in 2006, and our first factory in the Czech Republic was put into operation in 2007. At present, the European market has become the largest overseas market for Changhong brand business with more than 30% total overseas sales in Europe.
The Czech factory covers an area of 40,000m square and, at present, the annual output of TV has exceeded one million units. The factory has realised staff localisation with only a few Chinese managers, and it is in the process of implementing the most advanced information system construction which covers the whole business process of manufacturing, quality control, warehousing, logistics, sales management, after- sales service and staff management.
After this system is completely integrated, it will greatly improve the enterprise’s management accuracy and efficiency, shorten our enterprise’s response time to the market, decrease the average requirement on staff quality, reduce labour intensity, improve our competitive forces, and enhance customers’ sense of satisfaction.
Tell us what IFA means to you and Changhong…
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Photo: Huang Dawen, Vice General Manager, Sichuan Changhong Electric Co., Ltd.